What is the value of the deposit multiplier?
A) 0.1
B) 0.2
C) 1
D) 5
Ans: D) 5
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Banks can continue to make loans until their
A) actual reserves equal their excess reserves. B) excess reserves equal their required reserves. C) actual reserves equal their required reserves. D) actual reserves equal their checking account balances.
For a demand curve that is horizontal, the marginal revenue curve
A) will be to the right of the demand curve and half as steep. B) will be to the left of the demand curve and half as steep. C) will be to the right of the demand curve and twice as steep. D) will be the same as the demand curve.
Which of the following occurs during an expansion?
a. Output rises, employment rises and unemployment falls. b. Output falls, employment rises and unemployment falls. c. Output rises, employment falls and unemployment falls. d. Output rises, employment rises and unemployment rises. e. Output rises, employment rises and tax revenues fall.
A shift from D1 to D2 represents
A. an increase in demand.
B. a decrease in demand.
C. no change in demand.